What Is a DSP, SSP and Ad Exchange - The AdTech Guy

What is the difference between DSP and SSP?

DSP and SSP are two interdependent categories of the same process - RTB. SSP stands for publishers, and DSP - for advertisers.

1. What is a DSP?

A DSP, or demand-side platform, allows advertisers to buy impressions from a wide range of publisher sites that are targeted to specific users based on their like location and previous browsing behaviours etc.. A DSP ‘plugs in’ to an ad exchange, where publishers makes their inventory available. DSPs analyse the impressions that SSPs have put out and purchase on behalf of advertisers. They might pay more for impressions for a certain location or to reach a consumer who might find that ad relevant.

So how is a DSP different to an ad network?

Well, there’s some overlap between DSPs and Ad exchange in both you can access a wide range of inventory and targeting, but the key differentiator is that DSPs offer a centralised tool for buying, serving and tracking ads, and therefore it gives you the ability to optimise campaigns more easily.

DSP removes any risk of human error and cuts costs on sales people and ad buyers. This makes the process cheaper and more efficient, as there’s no longer any need for negotiating ad rates or faxing manual ad insertion orders.It also removes some of the more monotonous tasks involved in advertising to empower campaign managers to focus on optimising campaigns and improving the quality of their advertising.

2. What is an SSP?

An SSP, or Supply-side platform, is used by publishers to automate the selling of their inventory. It’s basically the same as a DSP but from the other side. While a DSP used by marketers to buy ad impressions from exchanges as cheaply as efficiently as possible, SSPs designed for publishers to maximise prices they sell impressions at. They’re both powered by similar kinds of technology.

An SSP allow publishers to connect their inventory to multiple ad exchanges, DSPs and networks all at once, opening it up to more potential buyers. SSPs also offer publishers the ability to set up ‘floor Price’, for specific buyers. SSPs are also sometimes referred to as a sell-side platform or yield-optimisation platforms.

3. So What's an ad exchange?

An ad exchange is like a digital marketplace where Publishers stock up their impressions, and advertisers pick the ones most appealing to them. This benefits both sides, as publishers make their inventory more widely available and advertisers have a bigger range of choice, all in one place.